Thursday, November 2, 2017

How E-Commerce Is Changing Commercial Real Estate

E-commerce has had a significant impact on the way people purchase goods. The convenience of buying what you want in the comfort of your home is hard to match. Due to the thriving amount of online shopping, brick-and-mortar stores are experiencing a decrease in customers. Retailers must now find ways to update and adapt in order to keep up with e-commerce. In today’s technology obsessed world, commercial real estate must find ways to remain profitable.

To get people to shop instore, companies must offer something special to draw people in. Commercial real estate needs to enhance the amenities provided at shopping centers. Child play facilities will encourage parents to leave the house more often if they know that their children will be entertained.

With the reliance on smart phones, commercial real estate must keep up with the current technology. Utilizing beacons can help drive people into the stores. Beacons use the phone’s GPS signal to forward information about stores located near the person’s location. The beacon can communicate individualized messages such as store promotions or provide helpful customer service. Technology can also help ease the payment process for customers. Amazon is testing a potential new concept called AmazonGo in their stores. This feature allows people to check in and out of stores with their smartphone. They also have sensor fusion, so the store knows what products the customer is planning on purchasing. To complete the transaction of buying the items, the customer merely needs to walk out of the store. This technology will help to abolish the hassle of checking out, and save customers time. Advancing the retail experience is the best tactic to ensure that people continue to shop there.

Another way e-commerce is affecting commercial real estate is with the supply chain process. In the past, inventory had to travel to several locations before reaching the store. However, retailers now are simplifying the procedure by having stores, warehouses and sites all in one place. This means that commercial real estate must buy property large enough to house the entire inventory. Having the inventory onsite will cut down on shipping and processing times, thus giving customers their items quicker.

Commercial real estate now must have multiple benefits to promote shoppers to come to their store. It’s not enough to simply offer products instore; people need more incentives to shop outside of their home. For help on adapting commercial real estate to e-commerce, contact NAI Isaac. NAI Isaac Commercial Properties can provide assistance by offering a variety of commercial real estate services. Our professional associates are well-equipped to handle any concerns related to real estate. We offer exceptional customer service and promise to produce remarkable results to leave clients satisfied. NAI Isaac is located in Lexington, Kentucky and serves the surrounding area as well.

Things to Consider Before Investing in Manufacturing Spaces

If your company doesn’t have enough room for your inventory needs, more manufacturing space may be the solution. Buying industrial real estate can be an intelligent decision, but there are some things to keep in mind before jumping straight to acquiring more property. Manufacturing is currently experiencing business growth. Ever since 2009, the low point, the output of manufacturing has steadily increased. As of 2015, it had grown by 12%. However this number is still 3% below the output in 2007, which was before the recession. So while manufacturing as a whole is seeing resurgence in output, it still has not completely recovered from the economic downturn of the last decade.

If you want to invest in industrial real estate in order to have inventory located closer to customers, consider upgrading the inventory process first before immediately acquiring more property. Examine the data of customers’ purchasing habits and divert products to the existing system of warehouses to fulfill the demand. By utilizing data collected, you can potentially eliminate the need to purchase more property. By having up to the minute inventory levels and following demand patterns, these practices can both help to prevent any issues that will affect operations.

Before acquiring more manufacturing space, try to first utilize the room you have now. Improving the layout of your current warehouse can have a tremendous impact on how much inventory can be accommodated. Make sure that all the vertical area is being properly used. Any empty space, that doesn’t impose a safety concern, can be used to hold more inventories. Consider the 80/20 principle that states that 80% of sales come from 20% of the products. Rearranging the warehouse to prioritize the 20% of products can improve efficiency. It is also smart to store items that are commonly purchased together near each other. Having the items in close proximity will allow for easier packaging.

Before spending lots of money for prime industrial real estate, consider expanding your location options. Instead of opening a new manufacturing space in a major market, think about investing in secondary markets. The smaller market would have more cost effective property options available. A study has shown that there is a demand for more supply chain operations away from major areas.
Optimizing the workforce process can deliver an increase in production. Hiring additional workers with the money that would have gone towards a new warehouse can accomplish this goal. More workers can increase the number of orders completed. You can also set up the warehouse as a zone-based picking approach. Utilizing a zone dependent system requires the workers to take fewer steps to pick the items, and thus speeds up the workflow. It’s also beneficial to decrease the amount of times the package is passed around. Each time a transfer occurs, it requires the package to be checked and packed by another worker. Limiting the turnover can help to make the fulfillment process faster.

If you find that after all is said and done you still need more manufacturing space, contact NAI Isaac. We are real estate experts who specialize in the nuances of industrial and commercial real estate, and we can give you valuable insight on your purchase. At NAI Isaac our main motivation is customer satisfaction, so you can rest assured that we will provide beneficial information to assist your business’ needs. NAI Isaac is located in Lexington, Kentucky and provides service to the surrounding area.

Tuesday, October 31, 2017

NAI Isaac Achieves Prestigious Accredited Management Organization (AMO) Status

NAI Isaac announces that it has been awarded the designation of Accredited Management Organization (AMO) from the Institute of Real Estate Management (IREM).  The accreditation is the sole recognition of excellence for leading real estate management firms.  AMO certification requires strict adherence to established ethical, educational and experience-based parameters as set forth by IREM national and local chapter representatives.

"As commercial real estate managers, we offer extensive experience, cutting-edge technology resources and high ethical standards to our clients."  says Anne Kilcoyne, CPM, Senior Property Manager with NAI Isaac.  "In an extremely competitive and continually evolving market, the AMO designation demonstrates the commitment our property management experts have to the services they provide."

For more than 75 years, IREM has provided education, resources, information and membership for real estate management professionals.  Nationwide, IREM identifies 550 AMO elite firms.  NAI Isaac joins this select group as the only AMO accredited firm in central Kentucky and one of only four headquartered in the state.

"Our property management team works to implement management strategies that effectively maximize the assets of our clients." says Al Isaac, President.  "The AMO designation only further distinguishes this group as a premier commercial property management entity in central Kentucky."